E-Invoicing Detailed Guidelines

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Contents

1. Introduction 05

1.2.
1.1. Benefits of electronic
E-invoicing invoicing
in The Kingdom of Saudi Arabia (linking E-invoicing Regulation with the VAT 06
Legislations) 05
1.4.
1.3.
The Authority
E-Invoicing phases (Generation & Integration)
07
06

1.5. Scope of this Guideline 08

3. Scope of E-Invoicing Regulation 17

3.2.
3.1.
Requirements to generate Electronic Invoices
Taxable Persons subject to E-Invoicing
18
17

3.4.
3.3. Transactions
Transactionsof the E-invoicing
Subject regulations that do not require issuance of E-Invoices
to e-Invoicing 25
18

4.1. Electronic Invoice (Standard Invoice) 28

2
Contents

4.3.
4.2.
Credit and Debit Notes
Simplified E-Invoice
32
30

4.5. Special billing arrangements (Self-billing and Third-party billing) 34

4.7.
4.6. Human readable formats
visual examples of printed invoices 41
38

5.
4.8. Compliant E-Invoice
Key fields included Solution
in the invoices Features
(for generation and integration phases) 43
47

6. E-Invoicing Solution Requirements timelines for Both E-Invoice 50

and Simplified E-Invoice

6.1. E-Invoicing Implementation Timeline 50

6.2. E-Invoice Technical Requirements 51

6.4.
6.3.
E-Invoicing Solution Requirement for Phase 2 (Integration Phase)
E-Invoicing Solution Requirement for Phase 1 (Generation Phase)
54
52
6.6.
6.5.
E-Invoice and Simplified E-Invoice Format
Clearance vs Reporting
57
55

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Contents

6.8.
6.7.
Information Security
Prohibited Functions
59
58

7.
6.9. Rights and
Data Storage andObligations
Archival of Taxable Persons 62
61

7.2.
7.1.
Obligations of taxable persons subject to VAT Implementing Regulation
Right to deduct / refund VAT
62
6
62
7.4. Additional E-Invoicing Obligations (e.g. using certified products,
7.3. E-Invoicing Record
maintaining Keeping stamp, etc.)
the cryptographic 63

8.
7.5.
Contact Us
E-Invoicing Compliance Audit
66
65

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1. Introduction

1.1 E-invoicing in the Kingdom of Saudi Arabia (linking E-invoicing Regulation

with the VAT Legislations)

Electronic Invoicing is a procedure that aims to convert the issuing

of paper invoices as well as credit and debit notes into an electronic
process that allows the exchange and processing of invoices, credit
and debit notes in a structured electronic format between the
buyer and seller.

The E-Invoicing Regulation, shall be read together with the Unified VAT
Agreement (the Agreement), the VAT Law published on 4/11/1438 H / /

and its amendments (the VAT Law), the VAT Implementing Regulation
(VAT Implementing Regulation) and the resolutions issued pursuant to
the Electronic Invoicing Regulation, including the resolution on the
Controls, Requirements, Technical Specifications and Procedural Rules
required for implementing Electronic Invoicing in Kingdom of Saudi
Arabia.

5
1.2 Benefits of electronic invoicing

Electronic Invoicing has several benefits for both Persons subject to the

E-Invoicing Regulations and national economy, these benefits include

but are not limited to:

1. Enhance business ecosystem with enriched fair competition and

consumer protection through provision of a unified process for

validating and auditing invoices.

2. Reduce hidden economy transactions.

3.Reduce commercial concealment by increasing requirements related

to invoice tracking and data retention.

4. Enriching the consumer experience and digitizing the

consumer-supplier relationship.

5. Increased compliance with tax obligations through enhanced

verification of business transactions.

1.3 E-Invoicing phases (Generation & Integration)

Electronic Invoicing is composed of two main phases, as follows:

1. Phase 1: Generation of Electronic Invoices phase, where

Persons subject to the E-Invoicing Regulations must generate

Electronic Invoices and associated Electronic Notes in accordance with

the clauses set forth under the Resolution on the Controls,

Requirements, Technical Specifications and Procedural Rules and any

6
subsequent resolutions. This phase shall be implemented effectively by

4th of December 2021

7
2. Phase 2: Integration Phase, where Persons subject to the E-Invoicing

Regulations must integrate their systems with the Authority‫׳‬s system in

accordance with the clauses set forth under the Resolution on the

Controls, Requirements, Technical Specifications and Procedural Rules

and any subsequent resolutions. Such phase shall be implemented

starting from 1st of January 2023. The integration phase will be

implemented in phases and will be mandated to Persons subject to

the E-Invoicing Regulations based on a certain set of criteria

determined by the Authority The target groups will be informed of the

integration procedures with the authority‫׳‬s systems at least six months

before the date set for integration with the target group or groups.

1.4 The Authority

The Zakat, Tax and Customs Authority, also referred to as “the

Authority” herein, is the authority in charge of the implementation and

administration of VAT (which may be referred to hereinafter as “the

Tax”) or (“VAT”). In addition to the registration and deregistration of

taxable persons for VAT, the administration of VAT return filing and VAT

refunds, and undertaking audits and field visits, the Authority also has

the power to levy penalties for noncompliance and is mandated to

implement the E-Invoicing framework in KSA, which was enforced

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through the E-Invoicing Regulations issued by the Board of Directors of

the Authority on December 2020.

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1.5 Scope of this Guideline

This Guidelines addresses all Persons covered by the scope of

application of Article (3) of the E-Invoicing Regulation which

covers:

Taxable person that is a resident in KSA.

The customer or any third party who issues a tax invoice on behalf

of the taxable person that is a resident in KSA according to the VAT

Implementing Regulation.

This Guideline aims to provide more information on certain industries,

transactions or scenarios and provide more detailed information on

how E-Invoicing will be applicable to such industries, transactions

or scenarios.

This Guideline contains and references several examples of electronic

invoices against the various invoices to be issued and the types of

transactions. These examples are referred to as “Please refer to XML

example (#)”. The complete list of examples and the human readable

format (PDF) of the invoice and the XML are included in a separate

document that are provided in the file “Invoice Samples” under the

developer’s page on the The authority‫׳‬s Website. Please note that the

Digital Signature value, the QR Code value, and the Invoice Hash

1
value in the XML examples are sample values. Actual values will be

made available with the E-Invoice validation toolkit

1
This Guideline aims to simplify and clarify the end-to-end journey of the

Taxable persons through electronic invoicing, their obligations, and

the overall solution requirements to comply with electronic

invoicing regulations.

This Guideline does not contain explanations of technical

implementation details directed at invoicing solution vendors. This

Guideline also does not contain integration process details as these

will be specified at a later stage.

1
2. Clarifications of the main terms used in this guideline

This section provides a clarification of the definitions used under the

Resolution and provides some additional definitions that will be

helpful to better understand the terms used under these

guidelines ,and clarify the mechanism for applying the provisions

related to the Resolution.

(1)Electronic Invoicing: It is a mechanism that aims to transform the

process of issuing paper invoices and notes into an electronic process

that allows the exchange of invoices and debit and credit notes and

their processing in an electronic format organized between the seller

and the buyer in an integrated electronic format

(2) E-Invoice: An e-invoice that is generated in a structured

electronic format through electronic means. A paper invoice that is

converted into an electronic format through copying, scanning, or

any other method is not considered an electronic invoice.

(3)Simplified E-Invoice: A tax invoice that is generated in a structured

electronic format and is of the Simplified e-invoice type, and does not

generally include the buyer’s details.Note that the provision of buyer

data may be required in specific cases, for example, Simplified

invoices for private medical or educational services provided to

Citizens, where the Kingdom shall bear the VAT responsibility that are
1
subject to the tax at the standard rate with a special tax treatments

(treated as “Zero Rated”), will include the buyer details and are

typically generated for a B2C (business to consumer) transaction.

1
(4) Electronic Note: Debit and credit notes that must be issued in

accordance with the VAT Law and its Implementing Regulation, and

which are issued in a structured electronic format through

electronic means. Paper notes that are converted into electronic

format through copying, scanning, or any other method, are not

considered electronic notes for the purposes of this Regulation.

(5)Debit Note: Debit notes are issued by the sellers in order to issue a

correction in value to buyers. Debit notes are used for increasing the

value of the original invoice or the VAT amount. Debit notes follow the

same format as the invoice for which they have been issued. As an

example, a standard Debit Note is issued to correct a Standard VAT

Invoice, and a simplified Debit Note is issued to correct a simplified e-

invoice.

(6) Credit Note: Credit notes are issued by the sellers in order to

refund buyers and are used to correct invoices information if

generated with an error. Credit notes follow the same format as the

invoice they have been issued upon. For example, a standard Credit

note is issued for a Standard VAT Invoice, and a simplified credit note

is issued for a simplified e-invoice.

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 (7) E-Invoice Solution: The Compliant solution which is used for

generating Electronic Invoices and Electronic Notes. Such a solution

must fulfil the specifications and requirements set forth under the

resolution on the Controls, Requirements, Technical Specifications and

Procedural Rules for Implementing the Provisions of the E-Invoicing

Regulation. The E-Invoice Solution can also be used for Integration of

Electronic Invoicing Systems. An E-Invoice Solution may contain one or

more Units.

(8) E-Invoice solution Unit: A component of an E-Invoice Solution used by

the Persons subject to the E-Invoicing Regulations that is assigned to

a specific location and which generates a continuous chain of linked E-

Invoices and its associated Notes in an XML format. Each Unit must

have its own Cryptographic Stamp Identifier and stamp each invoice

in its E-invoice and associated Note sequence. As an example, a

Unit can be a cash register that generates a single paper tape as a

record of the invoices issued on it.

(9) E-Invoicing Integration Portal: ZATCA’s portal for Persons -

subject to the E-Invoicing Regulations - E-invoice solution

integration for Clearance of Tax e-invoices or Reporting of Simplified

e-invoices that is to be activated starting from phase two (Integration

phase) of E-invoicing implementation.

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(10) Cryptographic Stamp: An electronic stamp which is created via

cryptographic algorithms to ensure authenticity of origin and integrity

of content of the data for the Electronic Invoices and its associated

Electronic Notes, and to ensure the identity verification of the issuer

for the Invoices and Notes for the purpose of ensuring compliance

with the provisions and controls of the VAT Law and its Implementing

Regulation regarding the generation of Electronic Invoices and

Notes.

(11) Cryptographic Stamp Identifier: A Cryptographic Stamp Identifier

is a unique identifier that links the E-Invoice Solution Unit and a

trusted third party able to confirm the identity of the Person subject to

the E-Invoicing Regulation and uniquely identify their unit.

(12) UUID: A 128-bit number, generated by an algorithm chosen to

make it unlikely that the same identifier will be generated by anyone

else in the known universe using the same algorithm. The UUID is

used by a compliant E-Invoice Solution and stored inside the XML

invoice. The Person subject to the E-Invoicing Regulation does not need

to know this value during the normal invoice issuing process, since it is

not required to be visible on the invoice.

(13) QR Code: A type of matrix barcode, with a pattern of black and

white squares that is machine readable by a QR code scanner or the

1
camera of smart devices in order to enable basic validation of

Electronic Invoices and Electronic Notes.

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 (14)Hash: A digital fingerprint of the invoice data. The hash is

generated via a standardized algorithm that guarantees a different

fingerprint if any piece of information on the invoice is changed. The

hash can only be generated after the invoice content is finalized.

Hashes are generated by a compliant Electronic Invoicing Solution and

the Person subject to the E-Invoicing Regulation does not need to know

this value during the normal invoice issuing process, since it is not

required to be visible on the invoice.

(15) Invoice Reference Number: A unique and sequential number that

identifies the issued invoice by the E-invoicing solution, according to

article 53 of the VAT Implementing Regulations.

(16)Clearance: Clearance is the process where the Authority shall

verify that the Electronic Invoices and their associated Electronic

Notes transmitted to it (through integration) by the persons subject to

E-Invoicing Regulation, fulfilling the controls and details specified in

the E-Invoicing Resolution, Annexes (1) and (2) of the Resolution, and

the relevant technical documentation. The Authority shall insert the

Cryptographic Stamp only on the Invoices and Notes which fulfil the

aforementioned controls and details as well as notify the issuers of

such Invoices and Notes prior to sharing them with the consumers.

Please note that the process of Clearance is not applicable to

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 Simplified E-invoices.

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(17) Reporting of simplified e-invoices and their associated notes:

Reporting is the process of sharing of the Simplified E-Invoices and

their associated Notes which are generated electronically- which

include the Cryptographic Stamp as specified in Clause (Fourth) of the

E-invoicing Resolution- with the Authority by the persons subject to E-

Invoicing Regulation. Persons subject to the E-Invoicing Regulation will

be required to transmit all simplified e-invoices to the ZATCA E-

Invoicing Integration Portal within (24) hours from its issuance.

(18) Invoicing solution providers (vendors): Third party solution providers

and

vendors are the suppliers of the electronic invoicing solutions to the

Persons subject to the E-Invoicing Regulation.

(19) Human Readable Format: The human readable format of the

invoice is a recognizable invoice that can be read and understood

by a human reader (including buyers and the Authority).

(20) The Authority‫׳‬s Toolkit: The Authority toolkit is the testing toolkit

provided by the Authority to allow Persons subject to the E-Invoicing

Regulation to verify that their solutions generate compliant invoices

and can be validated by the ZATCA E-Invoicing Integration Portal

after integration.

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(21) Business-to-Business (B2B): Business to business transactions

where a supply of a good/service is made to another business entity. In

B2B transactions the buyer is expected to request to use the tax

invoice for input VAT deduction. In a B2B transaction, it is expected

that the buyer will want to use the tax invoice issued in connection

with the supply to deduct or refund the VAT incurred by him on that

supply.

(22)Business-to-Consumer (B2C): Business to consumer transactions

where a supply of a good/service is made to customers (who are not

taxpayers or legal persons). These transactions are usually

documented with a Simplified E-invoice, where buyer data is not

recorded such as retail food transactions. Despite this, there are some

cases in which the supplier may be required to include the

customer’s data within the simplified invoice data, such as cases of

medical and educational services that are subject to tax according to a

special treatment from the authority, where the Kingdom bears the

tax for citizens (treated as if it is subject to a “zero rate”). Provided

that it is proven that the beneficiary is a citizen who is entitled to

benefit from the Kingdom’s incurring of tax under the royal decree

issued in this regard.

(23)Business-to-Government (B2G):Business to government entity or

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authority transactions where a supply of a good/service is made to

government entities. B2G transactions are documented with electronic

invoices, which include E-invoices or simplified E-invoices.

2
3. Scope of e-Invoicing Regulation

3.1 Taxable Persons subject to E-Invoicing

All taxable persons are obliged to generate E-Invoices and comply

with the E-invoicing regulations and its implementing resolutions

Taxable Persons are any natural or legal persons who carry on an

economic activity and are registered for VAT in KSA or are required

to be registered for VAT in the KSA. Taxable Persons who are subject

to the E-invoicing Regulation include:

Taxable person that is a resident in the Kingdom.

The customer or any third party that issues a tax invoice on

behalf of the taxable person that is a resident in the Kingdom

according to the VAT Implementing Regulation.

Taxable Persons who are not resident in KSA are not required to issue

Electronic Invoices or Electronic Notes for supplies or amounts

received which are subject to tax in KSA.

2
3.2 Requirements to generate Electronic Invoices

Electronic invoicing has not changed the requirements for issuing

invoices, and therefore, the issuance of invoices must be adhered to

in accordance with the provisions of the VAT Law and its

implementing regulations

3.3 Transactions Subject to e-Invoicing

3.3.1. Electronic Invoices (e-Invoices)

Taxable persons must generate e-Invoices for the following transactions:

Supplies of goods and services subject to the standard VAT rate or Zero rate; e-

Invoice is required for taxable supplies subject to the standard VAT rate

valued at SAR 1,000 or more, made to a taxable person or non-taxable

legal person.

For all Zero-rated supplies - these are also taxable supplies (with a VAT rate of
0%).

For any other Zero-rated supplies (i.e. domestic supplies of Zero-rated

goods, or services provided to a non-GCC resident), a Simplified e-

Invoice may be generated if the usual criteria for generating a

Simplified e-Invoice are satisfied.

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Export of goods from KSA;

An e- Invoice (Standard Invoice) is required for all exports of goods,

regardless of the value of the supply or status of the customer.

Example (1): Al Hafoof Chemical company, a registered taxpayer, is a

subcontractor for chemical products in Riyadh. Florida Steel Factory,

a USA based company, contracts Al Hafoof for chemical products for

one of their steel productions to be delivered in the USA. After

receiving the payment, Al Hafoof issued an electronic invoice through

their e-invoice solution. The technical fields of the invoice are

automatically generated by the solution, where Al Hafoof only inserts

information about Florida Steel Factory and their details,

goods/services sold, and the total value of the transaction. The

invoice will be zero rated since it›s an export invoice, and the VAT rate

will be 0%. The invoice totals will all be in USD except for VAT

amount which must be in SAR. Al Hafoof archives a copy of the e-

invoice in their records on a system according to the provisions in VAT

Law, VAT Implementing Regulation, E-Invoicing Regulation and

resolutions and all other relevant Laws in

KSA. Please refer to the XML example (5) in the file “Invoice Samples”

under the developer’s page on the The authority‫׳‬s Website.

2
Intra-GCC supplies in accordance with the Agreement, VAT Law and its

Implementing Regulation;

With regard to supplies of goods or services from a supplier residing in

the Kingdom to a customer residing in any member state of the Gulf

Cooperation Council “Intra- GCC supplies” an electronic invoice must be

issued in all cases in relation to such transactions (note that supplies

between the GCC countries will be considered inter-state supplies

from the date in which the transitional provisions under Article 79 of

the VAT Implementing Regulations expire, and until that date the

import and export provisions will apply to those transactions)

Example (1): ABC law firm, a taxable person resident in KSA provided

legal services to XYZ an entity resident in Bahrain for a dispute

related to real estate located in Bahrain, ABC will be required to issue

an E-invoice (Standard Invoice) to XYZ once relevant Articles of GCC

VAT Framework Agreement are enforced.

2
 Nominal supplies by the taxpayer in accordance with the Agreement, VAT

Law, and its Implementing Regulation;

A nominal supply is an actual supply of goods or services to

another person for no consideration. In principle, this should not

include the supply of free of charge samples and gifts which have

immaterial value provided under the normal course of business

(less than 200 SAR).

An e-Invoice must be generated for Nominal Supplies and

retained with the business records for audit purposes. However,

the taxable person receiving goods or services under nominal

supply arrangement (if any) will not be able to deduct input VAT

related to that nominal supply. The e-Invoice should therefore not be

provided to the Customer.

Example (1): Alaa store, a perfume store in Riyadh, provides a free

bag to a customer with a cost price of SAR 300 - as a token of

thanks for being a loyal Customer. Alaa Store is required to account

for VAT of SAR 45 (15% of the cost price) on the Nominal Supply of

goods for no consideration.

Alaa Store should generate a nominal supply E-invoice to document the

deemed supply for VAT purposes and retain this with its business

records, according to the provisions in VAT Law, VAT Implementing

2
 Regulation, E-Invoicing Regulation and resolutions and all other

relevant Laws in KSA. It should not provide the e-Invoice to the

customer.Please refer to the XML example (11) in the file “Invoice

Samples” under the developer’s page on the The authority Website

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 Any payments related to supply of goods or services and received by the

taxpayer before the actual supply.

An e-invoice must be issued on the date of receiving the payment that

is related to a supply of goods or services if the payment is made

before the actual supply (in cases of part-payment, an e-invoice must

be issued for the portion of consideration paid).

3.3.2.Electronic Notes

Taxable persons must generate Electronic Notes for the following

transactions: Cancellation or suspension of the supplies after its occurrence either

wholly or partially

In case of essential change or amendment in the supply, which leads to the change

of the VAT amount.

Amendment of the supply value which is pre-agreed upon between the supplier and

consumer.

In case of goods or services return.

3
Example (1): An industrial manufacturer pays an amount in advance to

a construction company for building a new warehouse. The construction

company generates an e-Invoice for the portion of payment received in

advance.

Before the project begins, the construction company advises it cannot

proceed with the project. The supply is cancelled, and an Electronic

Credit Note is generated in respect of the earlier e-Invoice and it should

refer to the sequential number of the original e-Invoice

Example (2): Alwady company sells chemical products to their clients

Dar Alslamah Company, the client returned the product they bought

from Alwady company. Alwady company will generate a credit note

through its system and submit it on ZATCA portal for validation and

share it with the buyer (submitting e-invoices and notes to ZATCA

portal is applicable after go-live of the Integration Phase starting from

January 2023) the credit note should refer to the sequential number

of the original e-Invoice and the date of supply. Please refer to the XML

example (6) in the file “Invoice Samples” under the developer’s page

on the The authority Website.

3
 Example (3): The United Arab General Trading Company generated an

e-Invoice on 1 January 2022 for a delivery of several items to Golden

Arrow Food Distribution Company. During a review of pricing in April

2022, it discovered that it used an incorrect price for two items,

resulting in charging less than the agreed price. It agrees with the

customer to generate a Debit Note to reflect the additional amount due

for these items. The Debit Note should be Electronic, and it should refer

to the sequential number of the original e-Invoice and the date of

supply.

The Debit Note must contain a reference to the e-Invoice issued in

respect of the initial Supply. Please refer to the XML example (7) in

the file “Invoice Samples” under the developer’s page on the The

authority‫׳‬s Website.

Example (4): Aziz Electronics decides to provide a SAR 200 credit to the

account of all regular customers as a goodwill gesture during the Eid

celebrations. The credit does not relate to any earlier supply of goods

or services. It should not generate an Electronic Credit Note or make

an adjustment to VAT in respect of this credit.

Example (5): Salah Hospital in Jeddah generated a simplified e-

Invoice on 10 February 2022 for a surgery for a Saudi citizen. Three

months after the surgery was performed, it was found that the patient
3
 (a Saudi citizen) was undercharged. The hospital made an agreement

with the patient to generate a debit note to correct the surgery

price.Please refer to the XML example (13) in the file “Invoice Samples”

under the developer’s page on the The authority‫׳‬s Website.

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 3.4 Transactions of the E-invoicing regulations that do not require issuance
of E-Invoices

Taxable persons are not required to generate Electronic

Invoices and/or Electronic Notes for the following transactions:

Exempted Supplies

For any domestic supplies of goods or services which are

exempt from VAT under KSA VAT Law and Implementing

Regulations (such as qualifying financial services, or residential

rental). KSA exempts taxable persons from the requirement to

generate Electronic Invoices for these supplies.

Example (1): The United Company of Takaful sold a life insurance

policy to Abdallah; it is not required to issue an e-invoice for

this transaction as the life insurance services are exempt from

VAT.

3
 Any payments related to exempted supplies and received by a taxpayer.

Example (1): In January 2022 Abdullah had rented an apartment

from ABC Real Estate Company, Abdullah paid the rent due for

the first 6 months in advance. ABC is not required to issue an E-

invoice for the amount received as the residential rent is

exempt from VAT.

Supplies subject to VAT pursuant to Reverse Charge Mechanism.

In cases where a taxable person receives a supply of services in

KSA from a non-resident supplier, that person must account for

VAT due under the Reverse Charge Mechanism. The non-

resident supplier will not generate an e-Invoice for the services

provided to the resident taxable persons. The Authority does not

require the recipient to generate itself an e-Invoice to record

the supply under the Reverse Charge Mechanism, but appropriate

records should be retained to evidence the transaction. The

records shall be reported in the recipient’s tax return filings.

3
 Example (1):

Jaber Consulting Services LLC is established in Jordan and has

no fixed establishment (e.g. office or permanent resources) in

KSA; and it is therefore not resident in KSA for VAT purposes.

Jaber Consulting Services provides consulting services to

businesses registered for VAT and to individual customers non-

registered for VAT, who are resident in KSA. Jaber Consulting

Services provides services to Al Tayer Group, who are a taxpayer

resident in the KSA. Neither of Jaber Consulting Services or Al

Tayer Group have to issue an e-invoice for the transaction.

Import of goods to KSA

Import of goods have VAT applied by, and paid to, the customs

as part of customs clearance. As the goods are transported

from a foreign country, there is usually no separate supply of

the goods in KSA as part of the import. In these cases, the

supplier does not generate Electronic Invoices for imported

goods nor the importer.

Example (1): Al Saqr LLC is a Saudi company engaged in the

construction of a reinforcing steel factory in Riyadh. For the

purposes of its construction activities, it imports construction

materials from a supplier established in Egypt. The sales

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 document used by the Egyptian supplier does not qualify

3
 as an e-Invoice from a KSA perspective.

However, an e-Invoice is not required as the goods are imported

by Al Saqr LLC and the Egyptian supplier does not make a supply

of the goods within the KSA. Al Saqr LLC uses the information

provided by the Customs to document deduction of the VAT

paid on import.

4. Types of E-Invoices

4.1 Electronic Invoice (Standard Invoice)

An electronic invoice is an invoice issued for most B2B and B2G

transactions. This type of document is used for claiming input VAT

deduction by buyers, with fields defined in Article 53 (5), VAT

Implementing Regulations. The fields required for generation to

be included within the e-invoice are included in the appendix of

the e-invoicing resolution. Standard e-invoices are shared by the

sellers to the buyers in an agreed format. Standard invoices

will be issued to the buyers after being cryptographically

stamped and “cleared” by ZATCA in the future (integration with

the ZATCA portal is applicable after the implementation of the

Integration Phase starting from January 2023). Further details

3
 are provided in section 7 of this guideline.

Standard Electronic invoices contain fields as per VAT legislations

including the seller and buyer information, transaction and

goods/services details in

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 addition to other technical fields that are to be generated by

the electronic invoicing solution. Sample images of the human

readable format of the Standard Electronic invoice are

included in Section 4.6 of this guideline.

Example (1): Al Salam Supplies Co. LTD, a registered taxpayer in

Riyadh. Al Kawther Markets, a registered taxpayer, contracts Al

Salam for providing their stores with goods. Once the items have

been delivered, Al Salam issued an electronic invoice through

their invoicing solution. The technical fields of the invoice are

automatically generated by the solution, where Al Salam only

inserts information about Al Kawther and their details, goods sold,

and the total value and VAT value of the transaction. Al Salam

archives a copy of the e-invoice in their records on a system

according to the provisions in VAT Law, VAT Implementing

Regulation, E-Invoicing Regulation and resolutions and all other

relevant Laws in KSA.Please refer to the XML example (1) in the

file “Invoice Samples” under the developer’s page on the The

authority‫׳‬s Website.

Example (2): Capital National Bank, a registered bank in KSA

provided Al Amaal Company with a corporate loan to finance the

company’s operations. The bank issued a tax invoice containing

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 two items, bank commission with an amount of SAR 6,250.00 and

loan’s Profit Element with an amount of SAR

4
 50,000.00. The bank commission is subjected to VAT with a

rate of 15%. The loan Profit Element will be exempt from VAT,

the Bank should issue an E-invoice for the taxable supplies

from the E- invoice solution used by the bank and if the bank

decided to issue one invoice for both the taxable and exempt

supplies then this invoice should meet the requirements of the E-

invoices.Please refer to the XML example (3) in the file “Invoice

Samples” under the developer’s page on the The authority‫׳‬s

Website.

4.2 Simplified E-Invoice

Simplified Electronic Invoices are designed for most B2C

transactions that are instant and where the buyer does not

need to use the invoice for input VAT deduction. The required

fields are defined in Article 53 (8), VAT Implementing Regulations

and in the appendix of the e-invoicing resolution. Simplified e-

invoices are issued to the buyers/customers at the point of sale

and are shared with the customers and a copy is subsequently

archived and stored. During the Generation Phase, it is sufficient

for Persons subject to the E-Invoicing Regulation to share the

Simplified E-Invoices with customers, with no further action

needed. During the Integration Phase, Simplified E-Invoices

need to be reported to the Authority within 24 hours of issuance.

4
 Further details are provided in section 7 of this guideline.

Sample images of the human readable format of the Simplified

E-Invoice are included in Section 4.6 of this guideline.

4
 Example (1): Al Salam Supplies Co. LTDs operate 3 stores in KSA

with over 12 cash registers. Each cash register generates

simplified e-invoices based on each sale to a customer, with a

QR Code applied to each invoice. All simplified electronic

invoices that are generated by the cash registers are then sent

to Al Salam company’ central repository and finance management

system. Al Salam company archives copies of the e-invoices in

their records on a system according to the provisions in VAT

Law, VAT Implementing Regulation, E-Invoicing Regulation and

resolutions and all other relevant Laws in KSA. On 1st of January

2023 (and according to the phases and targeted groups of the

integration), Al Salam company must report all invoices issued

within 24 hours from the time of issuance. Please refer to the XML

example (8) in the file “Invoice Samples” under the developer’s

page on the The authority‫׳‬s Website.

Example (2): A citizen bought three items from Alwaha

Pharmacy online store. Two items are standard rated items

with a VAT rate of 15% and the third item is zero rated since

it›s classified as medical goods according to the VAT law and

regulations. Once the payment has been made, the pharmacy

issues a simplified e-invoice through the pharmacy application

containing details on the items that the customer purchased and

4
 sends the invoice to the customer’s registered email address.

Please refer to the XML example (9) in the file “Invoice Samples”

under the developer’s page on the The authority‫׳‬s Website.

4
 Example (3): Al Jouf Business School is a private university in KSA

issued a simplified e-invoice for term tuition to a female Saudi

citizen. Since this is a private education services subject to the

standard tax rate an invoice should

be issued to the Saudi Citizen, this service is subject to a

special treatment which is considered as a «Zero Rated» invoice

as regulated by ZATCA, the

Saudi government will cover the VAT on behalf of the citizen. Therefore,
the

citizen won›t be charged VAT. Please refer to the XML example

(10) in the file “Invoice Samples” under the developer’s page on

the The authority‫׳‬s Website

4.3 Credit and Debit Notes

Electronic Credit / Debit notes are issued for an E-invoices / a

simplified e-invoices (after an e- invoice has been issued),

wherein the transaction is adjusted subject to Article 54 and

Article 40 (1), VAT Implementing Regulations. Credit and Debit

notes must be issued with a reference to the original invoice(s) to

which they are issued. The reference fields can be used to indicate

a date for reference, the invoice reference number, reference to

all/multiple invoices in a period, and any other reference to the

original sale. The credit/debit note types follow the type of

4
 invoice that they are issued against I.e. a standard electronic

note is issued for a Standard E-Invoice, and a simplified electronic

note is issued for a Simplified E-invoice.

4
 Example (1): DataExtract Consulting company purchases

several office furniture items from Zamil Furniture Group. After

they have been invoiced by Zamil, DataExtract wishes to return

several items that were defective. Zamil issue a credit note in

order to refund the amount paid, and the information is the

same as the information contained in the standard e-invoice

that was issued for the sale. The credit note contains a reference

to the original invoice. DataExtract archives a copy of the note in

their records on a system. according to the provisions in VAT Law,

VAT Implementing Regulation, E-Invoicing Regulation and

resolutions and all other relevant Laws in KSA.

4.4 Summary invoices by the taxpayer in accordance with the Agreement,

VAT Law, and its Implementing Regulation;

Summary Tax Invoices are a type of Tax Invoice that includes more

than one supply of Goods or services. Suppliers who have periodic (e.g.

monthly) invoicing practices may issue one commercial invoice

containing all the supplies made in that period. For VAT purposes, a

Taxable Person may issue a summary Tax Invoice, including all the

Taxable Supplies of Goods and services made by him in favor of a

single Customer according to the VAT Legislations. There is no

additional format or content requirements for summary Tax Invoices

4
 for VAT purposes.

A Taxable Person who issues a summary Tax Invoice should not issue

separate Tax Invoices for the individual supplies of goods and

services making up that summary Tax Invoice.

4
Example (1): Gulf Arabian Equipment Co., a Saudi VAT registered

company, has entered a contract with Al Bait Al Amer Construction

Co. (a Saudi resident entity located in Riyadh) to supply equipment

and services related to AI Bait Co. construction project in Riyadh. The

supply agreement prescribes that Gulf Arabian Co. will issue invoices

for goods and services provided at the end of each calendar month.

During April 2022, Gulf Arabian Co. supplied both equipment and

services to Al Bait Co. on different dates. While there is more than

one separate supply made by Gulf Arabia Co. to Al Bait Co. within the

same period of April 2022, Gulf Arabian Co. may issue a summary Tax

Invoice.Please refer to the XML example

(2) in the file “Invoice Samples” under the developer’s page on the The

authority›s Website.

4.5 Special billing arrangements (Self-billing and Third-party billing)

4.5.1. Self-billing

In accordance with the Unified Agreement for Value Added Tax, VAT

Law and its implementing regulations, the taxable buyer may issue

tax invoices on behalf of the supplier, provided that the tax

authority approves and applies the special requirements mentioned

in the regulations and that the supplier remains responsible before the

Authority for the accuracy of the data included in the tax invoices. In

5
this case, the buyer must generate tax invoices in an electronic format

in accordance with the provisions of the E-invoicing regulation.

5
The self-billing e-invoices generated by a buyer will contain an

electronic marker indicating this fact. This marker will be generated

automatically and will not be visible on the human readable version of

the e-invoice. The human readable format of the invoice must contain

a statement declaring that the invoice is a self-billing invoice.

Example (1): Al Salah Laundries LLC in KSA enters a three-year

contract with Al Jaber Hotel to provide laundry services. The

commercial agreement between them is that, for the length of the

contract, Al Jaber Hotel will issue the e-Invoices on a monthly basis for

laundry services on behalf of Al Salah Laundries based on an

agreed rate per item. After the e-Invoice is issued by Al Jaber Hotel,

Al Salah Laundries checks the information to match it with their

internal supporting documents and archives it. Al Jaber Hotel e-

invoice solution must be compliant with the specifications and

requirements of ZATCA and integrated with the ZATCA E-Invoicing

Integration Portal after the go-live of the integration phase. Al Jaber

and Al Salah Laundries archive a copy of the e-invoice in their

records on a system according to the provisions in VAT Law, VAT

Implementing Regulation, E-Invoicing Regulation and resolutions and

all other relevant Laws in KSA.Please refer to the XML example (4) in

the file “Invoice Samples” under the developer’s page on the The

authority‫׳‬s Website.

5
 Example (2): Al Salam Agency Services provides an intermediary

service to Al Faris Marketing Company, introducing it to potential

clients. Al Faris agrees to pay a commission of 2% of sales for

any introduced clients. As Al Faris has access to its sales

figures, it enters into an Agreement with Al Salam to calculate

the commission and issue a monthly self-billed e-Invoice, Al Faris

has to issue self-billed e-invoices on a monthly basis, and both Al

Salam and Al Faris have to archive a copy of the e-invoice in their

records on a system according to the provisions in VAT Law,

VAT Implementing Regulation,

E-Invoicing Regulation

and resolutions and all other relevant Laws in KSA. Al Faris e-

invoice solution must be compliant with the specifications and

requirements of ZATCA and integrated with the ZATCA E-Invoicing

Integration Portal once this becomes required.

5
 4.5.2. Third party billing

Third party billing is where transactions are invoiced by an

external party, like an accounting firm, is engaged to issue

invoices on behalf of the seller after fulfilling certain

requirements as specified in the VAT legislations. The e-invoices

generated by a third party will contain an electronic marker

indicating this fact. This marker will be generated automatically

and will not be visible on the human readable version of the e-

invoice. The human readable format of the invoice must contain a

statement declaring that the invoice is a third-party billing

invoice.

Example (1): DeluxePaints painting services company engages a

specialized accounting firm, Al Nakheel CPA office, to keep their

books and issue tax e-invoices to DeluxePaints’s customers.

DeluxePaint direct Al Nakheel CPA office to issue compliant tax e-

invoices and send them to DeluxePaint’s customers. Al Nakheel

will generate the tax e-invoices through its system on behalf of

DeluxePaints, submit them on ZATCA portal for validation, and

share them with DeluxePaints’s clients.

Example (2): Al Salam Supplies co. LTD sells their products

5
 through an e-commerce website called E-Books PLC.

5
A buyer of Al Salam Supplies Co. LTD returned the product

they bought through the e-commerce website of E-Books PLC. E-

books will generate the electronic credit note (according to

delegation from the supplier) through system on behalf of Al

Salam Supplies Co. LTD, share them with the buyer and then

submit them on ZATCA portal within 24 hours (reporting of

simplified e-invoices starts after go-live of the Integration

Phase in January 2023). Please refer to the XML example (12) in

the file “Invoice Samples” under the developer’s page on the The

authority‫׳‬s Website.

Sample of an Electronic Invoice

4.6 visual examples of printed invoices

4.6.1. Overview

Each type of e-invoice and associated note may be presented in human

readable form. The fields required to be visible on such a

representation are indicated in the E-Invoicing Resolution in Annex

(2). This section contains examples of visualized e-Invoices that

contain the fields required starting 4th December 2021. Fully compliant

electronic versions of these e-invoices will be required starting 1st

January 2023. For the period from 4th December 2021 to 1st

5
January 2023 the electronic versions of e-invoices are required to be

generated and archived, but they are not required to be compliant

with the formal XML specification.

5
‫‪Simplified E-Invoice Sample‬‬

‫ﻓﺎﺗورة ﺿرﯾﺑﯾﺔ‬
‫اﻟﻣﺑﺳطﺔ ‪Invoice Tax‬‬
‫‪Simplified‬‬

‫‪Number Invoice‬‬ ‫‪100‬‬ ‫‪100‬‬ ‫رﻗم اﻟﻔﺎﺗورة‬

‫‪Invoice Issue Date‬‬

‫‪25/4/2022‬‬ ‫‪25/4/2022‬‬ ‫ﺗﺎرﯾﺦ اﺻدار اﻟﻔﺎﺗورة‬

‫‪LTD Co. Supplies Salam Al‬‬

‫اسم الرشكة‪:‬‬
‫ﺷرﻛﺔ اﻟﺳﻼم ﻟﻠﺗورﯾدات اﻟﻣﺣدودة‬
‫‪Amal, Al Road, Abdulaziz King 8228,‬‬ ‫العنوان‪:‬‬
‫‪ ،8228‬طرﯾق اﻟﻣﻠك ﻋﺑداﻟﻌزﯾز‪ ،‬ﺣﻲ اﻟﻌﻣل‪ ،‬اﻟرﯾﺎض‪،‬‬
‫‪2121-12643، KSA‬‬ ‫‪KSA 2121, -‬‬
‫رﻗم ﺗﺳﺟﯾل ﺿرﯾﺑﺔ اﻟﻘﯾﻣﺔ‬
‫‪VAT Number:‬‬ ‫اﻟﻣﺿﺎﻓﺔ‪:‬‬
‫‪310175397400001‬‬

‫‪Subtotal Item‬‬
‫‪Nature of goods‬‬
‫‪price‬‬ ‫‪Quantit‬‬ ‫‪( )VAT‬‬
‫‪or services‬‬
‫‪Unit‬‬ ‫‪y‬‬ ‫‪Including‬‬
‫ﺗﻔﺎﺻﯾل اﻟﺳﻠﻊ‬
‫ﺳﻌر‬ ‫اﻟﻛﻣﯾ‬ ‫اﻟﻣﺟﻣوع )ﺷﺎ‬
‫أ‬‫‪ - A Item200.00 SAR‬اﻟﺳﻠﻌﺔ‬ ‫‪1230.00 SAR‬‬

‫اﻟﺳﻠﻌﺔ ب‬ ‫‪- B Item350.00 SAR‬‬ ‫‪2805.00 SAR‬‬

‫‪Total Taxable‬‬
‫‪Amount (Excluding‬‬
‫اﻹﺟﻣﺎﻟﻲ اﻟﺧﺎﺿﻊ ﻟﻠﺿرﯾﺑﺔ )ﻏﯾر ﺷﺎﻣل ﺿرﯾﺑﺔ اﻟﻘﯾﻣﺔ‬
‫)‪VAT‬‬
‫اﻟﻣﺿﺎﻓﺔ(‬ ‫‪900.00‬‬
‫‪Total VAT‬‬ ‫‪135.00 SAR‬ﻣﺟﻣوع ﺿرﯾﺑﺔ اﻟﻘﯾﻣﺔ اﻟﻣﺿﺎﻓﺔ‬
‫‪Total Amount Due‬‬
‫إﺟﻣﺎﻟﻲ اﻟﻣﺑﻠﻎ اﻟﻣﺳﺗﺣق‬ ‫‪1,035.00‬‬

‫‪5‬‬
E-Invoice Sample

Tax Invoice

Invoice Number: 100 100

Invoice Issue 25/4/2022 25/4/2022

Date:
Date of Supply: 25/4/2022 25/4/2022

Seller: Buyer:

Name: Name:
Al Salam AL

Building No. Building No.

Street Name 8 8 Street Name 3 3
District King Abdulaziz District King Abdullah
City Al City Al
Country Country
Ri Ri
Postal Code Postal Code
K K K K
Additional No. Additional No.
1 1 1 1
VAT Number: 2 2 VAT Number: 31017539840000
1 310175398400002
1
2
3101753974 3101753974
Other Seller ID: Other Buyer ID:
Comm
SAGIA
ercial
12345
123C123

Line Items:
Item Subtotal
Nature of goods
Unit price Quantity Taxable Amount Discount Tax Rate Tax Amount (Including VAT)
or services

Item A - 200.00 SAR 1 200.00 SAR 0 15% 30.00 SAR 230.00 SAR
Item B - 350.00 SAR 2 700.00 SAR 0 15% 105.00 SAR 805.00 SAR

Total amounts:
Total (Excluding VAT) 900.00 SAR
Discount 0.00 SAR
Total Taxable Amount
(Excluding VAT) 900.00 SAR
Total VAT 135.00 SAR
Total Amount Due 1,035.00 SAR

5
4.7 Human readable formats

Electronic invoices can be printed or included within human

readable formats in order to be shared with the buyers. Starting on

4th December 2021 Persons subject to the E-Invoicing Regulation may

utilize any format as a human readable format to share their electronic

invoices, but once the integration resolution comes into full force

starting in January 2023 human readable invoices must either be a

PDF/A-3 or, for simplified e-invoices, paper with the specified

information visible, including a QR code. During the transition period,

before the integration requirements come into effect, compliant E-

Invoice Solutions must be accompanied with supporting guide

documentation to allow the Authority or any reader to navigate the

invoice and its format.

Fully compliant human readable formats include:

Printed simplified e-invoice (paper) with all required visible fields present,

PDF Invoice (PDF/A-3 with embedded XML file) with all required visible fields

present in the human readable form.

The human readable format can be presented provided that it is in

Arabic (in addition to any other language) and Arabic or Hindi numerals

can be used (either of which will be considered as Arabic in the

invoices)
6
Sellers may share standard e-invoices in an XML or PDF (PDF/A-3 with

embedded XML) with the buyers

6
Types of transactions and the required e-invoice and a printed invoice to be

generated

Tax E-Invoice
Type of transaction
(Standard E-Invoice) Simplified E-Invoice

Taxable Supplies subject to

the standard rate valued at
SAR 1,000 or more, made to
a Taxable Person or non-

Taxable Supplies of Goods or

services (other than exports
of goods) made to a Taxable
Person or non-taxable Legal
Person, valued at less than
SAR 1,000

Taxable Supplies made

Export of goods
to a non-taxable natural
person (other than
exports of goods)

Supplies which are totally exempt

from VAT in the KSA N/A N/A

6
 Zero-rated supplies
valued at SAR 1,000 or
more, made to a Taxable
Person or non-taxable

VAT due under Reverse

Charge Mechanism N/A N/A

Intra-GCC supplies

Supplies outside the scope of

N/A N/A
VAT

N/A N/A
Imports of Goods

Nominal Supplies (not

presented to Customer but
retained for audit purposes)

4.8 Key fields included in the invoices (for generation and integration phases)

Each e-invoice generated by a solution must comply with the

prescribed format that includes transactional detail fields and technical

fields. The following technical fields are automatically generated by the

Person subject to the E-Invoicing Regulation’s compliant e-invoice

solution. Persons subject to the E-Invoicing Regulation are only

required to validate that the fields are generated and are valid by

using the Authority e-invoice validation toolkit.

6
 Special fields details Timeline

E-invoices and simplified e-invoices must include

a Universally Unique Identifier (UUID).
A UUID is used to identify an invoice through a globally unique number once it is
A UUID is an automatically generated number that is generated within the taxpay
Compliant e-invoice solution vendors must ensure that their solutions are able to
If an e-invoice is generated but is not in a compliant format due to a system error
An example generated UUID:
061c95fb-d6bb402-e-aa6-24cb09ec1d013

UUID Integration Phase

E-invoices (tax invoice) must include a

cryptographic stamp generated by the
Authority E-Invoicing Integration Portal.

Simplified e-invoices must include a

cryptographic stamp that is generated by
the taxpayer’s invoice solutions.
Cryptographic Integration Phase
Stamp The Cryptographic Stamp is automatically
generated by the solutions and is not
visible on the printed invoice apart from
an embedded version in the QR code.
Persons subject to the E-Invoicing
Regulation must ensure that their
solutions are registered and compliant.

6
 The cryptographic stamp identifier is a
credential that is associated with a
cryptographic stamp and associates it
with a registered Invoice Solution. The
cryptographic stamp identifier will be
issued and managed through the ZATCA
Cryptographic Stamp Integration Phase
E-Invoicing Integration Portal as part of the
Identifier
device registration process.
Persons subject to the E-Invoicing
Regulation shall login to the ZATCA E-
Invoicing Integration Portal using their
current accounts in order to request
and manage cryptographic stamp
identifiers for their Electronic Invoice
Solutions.

An invoice hash is automatically

generated within the taxpayer’s invoice
solutions and is not visible on the invoice.
The hash can be thought of as a digital
fingerprint of the invoice.
The previous invoice hash must be
included within the subsequent electronic Integration Phase
Previous Invoice Hash invoice or note document.
If an e-Invoice Solution produces an
invalid e-Invoice, this document stays part
of the record and its hash is included in
the next document.
Compliant vendors must ensure that the
solutions they offer are able to generate
invoice hashes and that they are present
within the electronic invoice.
An example of the previous invoice hash:
NWZlY2ViNjZmZmM4NmYzOGQ5NTI3ODZj
N
mQ2OTZjNzljMmRiYzIzOWRkNGU5MWI0Nj
cy OWQ3M2EyN2ZiNTdlOQ==

6
 The QR contains basic invoice data and is
included within the printed invoice and the electronic invoice.
QR codes are used by customers who wish to verify their invoices and ensure tha
QR codes are automatically generated by the E-invoice solutions and include:
The Seller’s name
Seller’s VAT Registration number
Time stamp of the invoice (date and time)
Invoice total
VAT total
Cryptographic Stamp (Integration phase)
Hash of the invoice, which links the QR code to the underlying e-Invoice XML in a
The cryptographic stamp of either the E-invoice Solution for Simplified E-invoices,
-The public key used to generate the Cryptographic Stamp to ease cryptographic
For Simplified E-invoices only, the Authority‫׳‬s cryptographic stamp of the E-invoic

Generation
Phase (Simplified e-invoices and
Integration Phase (All rem
QR Code

NOTE: The e-Invoice QR code requires a

specialized app to read and, unlike some QR codes, does not contain a link to any

The invoice counter is a functionality of

electronic invoice solutions and is
generated automatically by the solutions.
The invoice counter increments for each
issuance of an invoice on the system. The
Invoice invoice counter value is not present on Integration Phase
counter the printed invoice.
The value of an invoice counter may
repeat on separate e-Invoice Solution
units owned by the same taxpayer.
A sample of the invoice
counter: 46531

6
5. Compliant E-Invoice Solution Features

5.1 Compliant E-Invoice Solution

E-Invoice Solutions (B2B/B2G)

All types of solutions that Persons subject to the E-Invoicing Regulation

use for generating electronic invoices.

Simplified E-Invoice Solutions (B2C)

All types of solutions that the Persons subject to the E-Invoicing Regulation

use for generating simplified electronic invoices.

A particular e-Invoice Solution may combine both types and must

then meet compliance requirements for both types as well.

Persons subject to the E-Invoicing Regulation may use both or one

type of the invoice solutions above and include, but not limited to:

6
 Invoice Transaction
Generation Tool Definition Type

Invoices are generated via a cash register device

and stamping happens on the device itself. the device generates invoices and sto
Online Cash Registers (OCRs) B2C

A system that provides invoice

generation as a function. Simplified
Enterprise Resource Invoices are generated and stamped B2B
Planning software (ERP) automatically on a server and integrated B2C
with ZATCA. Standard E-invoices are
stamped by the ZATCA Integration Portal
during the Clearance process

Invoices are generated on the e-

eCommerce solutions commerce platform which is connected B2B
to a cloud server or local server and the B2C
stamping process must be done by the
server for Simplified E-invoices. Standard
E-invoices are stamped by the ZATCA
Integration Portal during the Clearance
process.
B2B
Virtual Cash Register B2C
(VCRs)
This solution generates invoices on an
end-point software via a general-purpose
device (PC, tablet, or smartphone).

Invoices are generated and stored on a cloud B2B

Cloud Solutions B2C
server.

Cash registers are connected with a

Networked Electronic B2C
control server. The control server issues
Cash Registers (Net
the invoices and stores them in the
ECRs)
archive.

6
Compliant Invoice solutions do not include the following:

Text editing tools

Excel or similar softwares.

Other bookkeeping software, unless they have been fitted with

compliant adapters.

Paper based invoice printer, unless it also produces compliant

electronic invoices for archival as well.

6
6. E-Invoicing Solution Requirements timelines for Both E-Invoice
and Simplified E-Invoice

6.1 E-Invoicing Implementation Timeline

Taxable persons subject to E-Invoice regulation are obliged to generate

Electronic Invoices and Electronic Notes starting from 4th of December

2021.

For the second phase requirements (Integration phase) starting from

1st January 2023 where the Persons subject

to the E-Invoicing Regulation will be integrated with the Authority’s E-

Invoicing Integration Portal through an Application Programmable

Interface (API) that the Authority will provide and will share and transmit

invoices to the Authority.

All compliant e-invoicing solutions will be able to connect to the

internet and connect to the API of the Authority E-Invoicing Integration

Portal. Persons subject to the E-Invoicing Regulation will have to ensure

that their e-invoice solutions can integrate with the Authority and

send invoices as per the invoice type.

During the integration phase, Persons subject to the E-Invoicing

Regulation will be able to share invoices with the Authority based on a

Clearance/Reporting model as described in section 6.5. The clearance

model applies to the Electronic Invoices, whereas the reporting model

7
applies to the Simplified E-Invoices

7
Integration of the Persons subject to the E-Invoicing Regulation

systems with the Authority‫׳‬s system shall happen starting from 1st

January 2023 In waves by targeted taxpayer groups, where they will be

notified by the Authority on the date of their integration at least 6

months in advance

6.2 E-Invoice Technical Requirements

All E-Invoice Solutions must be able to connect to the internet in order to

share invoices with the Authority.

The e-invoice solutions must be able to connect with an API published by the

Authority in order to share invoices. Specific integration requirements will be

published in the future and E-invoice Solution vendors will have enough time

to update their products and services.

The e-invoice solutions must have tamper-proofing mechanisms that prevent

any modification or tampering with invoices or the solution itself, and must

be able to record and detect any tampering attempts.

7
6.3 E-Invoicing Solution Requirement for Phase 1 (Generation Phase)

Requirements for generating e-Invoice and Simplified e-Invoice

starting from 4 December 2021

Requirements E-Invoice Simplified

e-Invoice

Invoice Electronic Invoices must be generated

generation through electronic means
means

Generate electronic invoice with non-

Invoice fields
Invoice Generation integration related fields

Invoice No format mandated

format
Invoices must be archived as per VAT
Invoice regulations and accessible at any point
storage in time to the Authority ,please refer to
section 6.9
QR code
included
QR code
with basic
Not mandated invoice and
taxpayer
information

Cryptographic Not mandated

stamp
Security & Integrity
Device Not mandated
Registration

UUID Not mandated

Hash Not mandated

Internet Solution must be able to connect to the

Connectivity internet

Integration Invoice clearance Not mandated

Invoice reporting Not mandated

7
Illustrative diagram for Generation Phase
E-Invoice Generation for B2B/G transactions

Illustrative diagram for Generation Phase

Simplified E-Invoice Generation for B2C transactions

7
6.4 E-Invoicing Solution Requirement for Phase 2 (Integration Phase)
Requirements for generating e-Invoice and Simplified e-Invoice
starting from 1 January 2023

Electronic Simplified Electronic

Requirements
Invoice Invoices
Invoice
Invoices must be generated through electronic
generation
means
means
Invoice fields Generate additional fields required for
Invoice integration Phase
Generatio Invoices must be generated in XML format or PDF/A3-
n Invoice format
format with embedded XML

Invoices must be archived as per VAT regulations and accessible

Invoice storage at any point in time by the Authority , please refer to
section 6.9

No requirement from the

taxpayer.
The QR code value will be
generated by the taxpayer’s
QR code solutions and the E-Invoicing QR code mandated with
Integration Porta will update additional information for
the code during the Clearance phase 2 (Integration Phase)
process.
The QR code will then be
printed to be visualized on
the human readable invoice
by the taxpayer.

Security & No requirement from the

Integrity Cryptograph taxpayer. Cryptographic Cryptographic
ic stamp stamps are applied by the stamp
Authority E-Invoicing mandated
Integration Portal.

Compliant solutions must

Device be registered on the
Not mandated
Registratio Authority
n E-Invoicing Integration
Portal using unique
device ID

UUID To be included as part of the e-invoice

(Hash)
To be included as part of the e-invoice

Solution must have ability to Solutions must have the ability

Internet connect to the internet for to connect to the internet for
Connectivity
invoice clearance simplified E-invoice reporting

Integratio Invoice Sharing of invoices with Not mandated

n clearance the E-Invoicing Integration
Portal in real-time via API
(for clearance)

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 6.5 Clearance vs Reporting

Each E-Invoice generated electronically must be cleared by the

Authority as a prerequisite for sharing them with the buyers and for

such Electronic Invoice to be regarded as legal and valid.

Clearance model:

Clearance is a real-time transaction integration model of e-invoices,

where after integration, the taxpayer directly sends the electronic

invoice prior to sharing with the buyer. Electronic invoices are then

validated across several categories of varying level, and if approved,

are stamped by the Authority and returned to the taxpayer.

Clearance applies to all e-invoices and their associated credit/debit

notes (non-simplified)

Illustrative diagram for Integration Phase

E-Invoice Generation for B2B/G transactions

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Reporting:

Taxable persons must report the Simplified e-Invoices to the Authority.

Reporting model:

Reporting is a near-real time transaction model, where Simplified E-

Invoices and its associated notes are reported to the Authority E-

Invoicing Integration Portal within 24 hours from issuance. Once

uploaded, Simplified Electronic Invoices are then validated, and an

acknowledgement through the API is reported back to the taxpayer.

Simplified E-Invoices must be generated using compliant E-Invoicing

Solutions and reported to the E-invoicing integration portal as set out

by the Authority requirements under the Controls, Requirements,

Technical Specifications and Procedural Rules for Implementing the

Provisions of the E-Invoicing Regulation and further subsequent

resolutions.

Illustrative diagram for Integration Phase

Simplified e-Invoice Generation for B2C transactions

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 6.6. E-Invoice and Simplified E-Invoice Format

For the generation phase (4 December 2021), there is no

specific format required to generate and store the E-Invoices

After go-live of the integration phase, electronic invoices must

be generated in a specific format with specific fields as per

Electronic Invoicing Rsolution.

Starting with the Integration phase the Invoice must be in XML

format in order to be shared with the Authority using the API for

both clearance and reporting.

Samples of standard and simplified electronic Invoices in XML

format that contain all information required have been provided

in the accompanying examples.

Once an E-invoice is Cleared by the Authority, Suppliers can

share the invoice or associated note with the customers.

Simplified E-Invoices may be shared directly with the

customer while Reporting of such invoices should happen

within 24 hours of generation.

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6.7. Prohibited Functions
The following section details the functions in which the Compliant
Solution must not have:
Function Definition
Enforced by the generation phase (4 December 2021)

Persons subject to the E-Invoicing Regulation cannot access the

Anonymous system without logging into the system using unique login and
access password or biometrics.

Ability to operate with Having a default password or factory password is not allowed. Each
default system must require the user to reset the password on first use.
password
The system must log all user activities associated with the invoice
Absence of user
generating process, starting with login authentication and
session
continuing to all system functions.
management
Persons subject to the E-Invoicing Regulation are not allowed to
modify or delete invoices once they are issued whether these are
Allow alteration or deletion of
generated by the system or outside it.
generated e-invoices or their
If a user wishes to “cancel” an invoice, this may only be done
associated notes through issuing an associated credit note.

The system must not allow any modification on system logs that
Allow for log store the system‫׳‬s activities.
modification/ All user activities can be logged and stored without any changes to
deletion the system generated logs

Generated with Persons subject to the E-Invoicing Regulation are not allowed to
inaccurate change time or date on the e-invoice solution in a way that
would result in the generated documents to contain false
timestamps
information

Non-sequential All log entries of the e-invoice solution must be time stamped and
linked by placing the hash of the previous invoice in the associated
log
field of the next invoice in a sequence, so that their order cannot be
generation
changed.

The e-invoice solution must not provide a feature where the

Invoice counter
invoice counter can be reset
reset

Enforced starting from the Integration phase (1

January 2023)

The solution unit must not generate more than one sequence so that
all invoices generated by an E-invoice Solution unit are linked using
“Previous Invoice Hash” value into a single chain.
If a taxpayer generates invoices in separate locations on separate
Allow ability to generate more units, each unit should generate a single invoice sequence and
than one invoice sequence at the units do not need to coordinate invoice creation for the purpose
any given time of ordering the invoices in the sequence.
A solution might at times generate invalid E-invoice or associated
Note documents. Such documents should remain, and not be deleted,
to preserve the continuity of the E-invoice document order.

The solution must not allow software time changes that will change
Time changes
or modify the timestamp value during E-Invoice or Credit/Debit Note
issuing

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 The solution must not provide an option to export the
Export of stamping cryptographic stamp private stamping key of the solution
keys

8
 6.8. Information Security

Persons subject to the E-Invoicing Regulation must ensure that their

Compliant E-Invoice Solutions must be tamper-resistant and include a

mechanism which prevents tampering and reveals tampering

attempts that might occur.

The anti-tampering mechanisms include:

Prevention of invoice counter reset (Starting from Generation

Phase) Resetting the invoice counter should not be a function

available in an E-invoice solution and access to the counter value

should be protected from system users.

Prevention of date changes (Starting from Integration Phase)

Resetting the system‫׳‬s date and time should be inaccessible to

system users. Prevention of deletion or modification of invoices

(Starting from Generation Phase)

Users of the E-invoice Solution should not have the ability to

delete or change E-invoice and associated XML documents

stored on the solution. The solution should be equipped with

sufficient memory to store the E-invoice and associated XML

documents generated by it.

Prevention of uncontrolled access (Starting from Generation Phase)

Access to E-invoice Solution functions must always be via a logged

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 in user who is granted access only to functions that are necessary

to perform their role.

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 Prevention of export of stamping keys (Starting from

Integration Phase) The cryptographic stamp identifier is

associated with a unique private key that should be generated

by the solution, so that it may not be viewed or copied during

system initialization. Export of the key would enable theft of

the E-invoice Solution’s identity, and so should be blocked by

the solution vendor using a software or hardware key vault.

The Compliant Solution must be able to protect the generated

Electronic Invoices and Electronic Notes from any alteration or

undetected deletion and contain some functionalities which enable the

taxable person to save Electronic Invoices and Electronic Notes and

archive them in XML format without an Internet connection.

Once invoices are generated, they should not be deleted or

altered by any user.

The solution will also allow Persons subject to the E-Invoicing

Regulation to store the invoices once they are generated in a

safe and secure manner to avoid leakage or loss of

information.

8
6.9 Data Storage and Archival

Persons subject to the E-Invoicing Regulation may store their

electronic invoices in a server on-premises in KSA or in the cloud

as per their solution requirements and storage requirements and

according to the provisions in VAT Law, VAT Implementing

Regulation, E-Invoicing Regulation and resolutions and all other

relevant Laws in KSA

As per VAT Implementing Regulations, if the data is hosted on

the cloud, it must be accessible through a direct link that can be

made available to the Authority.

The Solution must allow Persons subject to the E-Invoicing Regulation

to export and save their invoices onto an external archival system

Each stored invoice must follow a naming convention for naming

of the file: VAT Registration (tax registration number) +

Timestamp (date and time at the point of invoice generation) +

Invoice Reference Number

Taxpayer’s E-invoicing solutions may reside on the cloud in

accordance with VAT Implementing Regulation, however additional

non tax-related regulations may apply to the taxpayer entity,

such as National Cybersecurity Authority published laws and any

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 other applicable regulations or controls.

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 7.Rights and Obligations of Taxable Persons

7.1. Right to deduct / refund VAT

Starting from 4th December 2021 the taxable persons (Buyers) will

have the right to deduct VAT charged by the taxable suppliers’

subject to Electronic invoicing regulation, provided that the

invoices used are electronically generated and fulfil the

Generation requirements.

7.2. Obligations of taxable persons subject to VAT Implementing Regulation

In addition to the general obligations prescribed in the VAT

legislations, taxable persons subject to E-invoice regulation are

obliged to:

Generate all E-invoice (standard and simplified) and its

associated notes that must be issued within the timelines

specified in the VAT legislations, in an electronic form

starting from 4th December 2021 (the day following the

expiration date of the grace period specified in Article (7),

paragraph (B) of the E-Invoicing Regulation for E-invoices).

Starting from the Integration phase, E- invoices must be

cleared before being shared with the clients and Simplified E-

Invoices must be reported to the Authority‫׳‬s E-invoice

8
 Integration Portal within 24 hours.

Comply with all the provisions set forth under the E-Invoicing

Regulation in addition to the controls, requirements,

technical specification and procedural rules specified in

the resolution on the Controls, Requirements, Technical

Specifications and Procedural

8
 Rules for Implementing the Provisions of the E-Invoicing

Regulation. Fulfilment of this requirement may be met by

the taxpayer through obtaining a compliant E-invoice

Solution that produces the types of E-Invoice and/or

Simplified E-invoice documents and associated Notes that

the taxpayer required to conduct their business.

Adhere to the specified timelines for compliance with the

specifications and requirements of Electronic Invoices

specified in the resolution on the Controls, Requirements,

Technical Specifications and Procedural Rules for

Implementing the Provisions of the E-Invoicing Regulation

and mentioned in section 1.3 of this Guideline.

7.3. E-Invoicing Record Keeping

Taxable persons must adhere to the record keeping

requirements of Electronic Invoices, Electronic Notes and its

associated data, and any other requirements as per the

applicable laws and regulations and as described in Section

6.5 of this Guideline under the subheading Data Storage and

Archival.

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 7.4. Additional E-Invoicing Obligations (e.g. using certified
products, maintaining the cryptographic stamp, etc.)
The taxable persons subject to the E-invoicing Regulations must adhere
to the following obligations:

Notify the Authority through the means specified by the

Authority of any incidents, technical error or emergency

matters which hinder the generation of Electronic Invoices

or Electronic Notes and notify the Authority of recovery.

Furthermore, to resume generation and

Clearance or Reporting of all E-invoices and associated Notes

as soon as the Solution becomes operable.

Not to use any E-Invoice Solution which is not compliant with

the specifications and requirements specified in the

resolution on the Controls, Requirements, Technical

Specifications and Procedural Rules for Implementing the

Provisions of the E-Invoicing Regulation. Means of finding

vendors, who have declared compliance or who have been

verified as compliant will be provided on ZATCA’s website

with sufficient notice to allow for necessary system purchase

and/or upgrade.

Register the E-invoice Solution Units used for generating

Simplified Invoices and their associated Electronic Notes in

8
 accordance with the specified mechanisms and controls

specified in the resolution on the Controls, Requirements,

Technical Specifications and Procedural Rules for

Implementing the Provisions of the E-Invoicing Regulation.

9
 Preserve the Cryptographic Stamp Identifiers and its associated

components in a safe way, and protect them from copying or illegal

use, and not use them for purposes other than those which they

are intended for.

Integrate with the Authority‫׳‬s systems starting from the date

specified in the resolution on the Controls, Requirements,

Technical Specifications and Procedural Rules for Implementing

the Provisions of the E-Invoicing Regulation. and any

subsequent resolution in this regard.

7.5. E-Invoicing Compliance Audit

From time to time Persons subject to the E-Invoicing

Regulation may be subject to ZATCA tax audit. In such

situations the taxpayer should cooperate with ZATCA

auditors and provide them with all the data required to

enable them to check the taxpayer compliance

with the requirements mentioned in VAT legislations, and E-

invoicing regulations and associated resolutions. And to

provide ZATCA auditors with the archived e-invoice and

associated note files. See section 6.5 for Data Storage and

Archival requirements.

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Contact us

For any further information please visit us on

www.gazt.gov.sa Or reach out to our customer service

center on the following numbers and email:

(Local) 19993

(International)

+966112048998

info@zatca.gov.sa

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